I know that buying a house requires due diligence, and I wonder if I could use a real-life example of what we're looking at right now. We already have one IP and are thinking of buying a 2br unit. It's located in Lynwood which is about 18km from Perth CBD, is close to major shopping centres, bus and in a suburb where older houses with larger blocks are being snapped up. The unit is listed from 260k, its got a nice new kitchen, newish bathroom although the block itself is quite old and a bit rundown looking. Another 2 units is also for sale in the block of 18 - 1 is listed also 260k, the other 300k (fully renovated). This unit was purchased in Feb 2009 for 202k. Units being sold around 200k in 2010. 2 units sold last year July 2014 and September 2014 ,one for 270 and the other for 278k. Would be able to get rent of 280-290 per week. Strata fees $430 pq. My question is - how much has the market changed/dropped from 12 months ago? What other things should we consider? How else can we work out market value? What kind of offer would you make on it?